Tokenized gold could unlock $700 billion new demand - World Gold Council
RWA Signal Insight
CommoditiesThe World Gold Council (WGC), in collaboration with Boston Consulting Group, has released a white paper identifying a $700 billion opportunity to expand gold investment demand through tokenization. While the current tokenized gold market reached a capitalization of over $4 billion in 2025, it remains a small fraction of the broader gold investment landscape. To address market fragmentation and high development costs, the WGC is developing a "Gold as a Service" platform designed to provide shared infrastructure for physical custody, digital issuance, and settlement. This initiative aims to transform gold from a passive store of value into a more liquid asset that can be efficiently used as collateral in financial markets. Industry leaders from HSBC and ICBC Standard Bank highlighted that tokenization simplifies access for retail investors and unlocks utility for institutional balance sheets. By establishing common standards for auditing and redemption, the WGC seeks to overcome barriers that currently hinder broader adoption. This shift represents a critical evolution for the precious metal as it integrates into modern digital financial systems.
Key points
- WGC estimates tokenization could unlock $700 billion in latent gold investment demand.
- Tokenized gold market capitalization surpassed $4 billion in 2025.
- WGC is developing "Gold as a Service" to standardize custody and digital issuance.
- HSBC's Hong Kong digital gold token successfully attracted new client demographics.
Background
The World Gold Council is the market development organization for the gold industry, working to stimulate and sustain demand for gold. Tokenized gold involves creating digital tokens on a blockchain that represent ownership of physical gold stored in secure vaults, allowing for fractional ownership and easier transferability.